Unlocking the Value of LDES: Market Design, Policy Signals and the Path to Deployment for LDES

Why It Matters

LDS is the missing link that turns abundant renewable generation into reliable, low‑cost power, and its financing hinges on clear policy signals and risk‑mitigating market designs.

Key Takeaways

• Long-duration storage essential for renewable grid reliability and energy security.
• Current investment skews to generation; storage receives under 2% funding.
• Policy signals and stable revenue streams needed for LDS bankability.
• Multi‑pillar flexibility strategy includes batteries, interconnectors, demand response, LDS.
• Public‑private partnerships can de‑risk projects and accelerate deployment.

Summary

The webinar hosted by the Long‑Duration Energy Storage Council and IRENA focused on unlocking the value of long‑duration storage (LDS) from a regulatory and market‑design perspective. Speakers highlighted that while renewable generation capacity is soaring, the system‑enabling infrastructure—particularly multi‑day storage—remains under‑invested, jeopardizing grid reliability and energy security.

Key insights included a debunking of three common myths: fossil fuels, not renewables, pose the biggest intermittency risk; high renewable penetration is already viable in regions like Denmark; and LDS is not prohibitively expensive, with 4‑hour batteries costing about $125/kWh and levelized storage costs around $65/MWh, making solar‑plus‑storage competitive with new gas plants. The panel stressed that a robust flexibility portfolio must combine short‑duration batteries, interconnectors, demand‑side management, and LDS to meet daily to seasonal balancing needs.

Notable remarks came from Simon Benmarz, who warned that less than 20% of transition investment goes to system enablers, and Julia Ser, who outlined the three pillars of LDS bankability: predictable long‑term revenue, risk reduction through standardized frameworks, and coordinated policy‑financial support. Both emphasized that the technology is ready, but financing mechanisms and clear market signals lag behind.

The implication for policymakers and investors is clear: without updated market rules, long‑term procurement contracts, and public‑private capital structures, LDS projects will struggle to achieve scale. Accelerating deployment will require aligning revenue models, de‑risking investments, and creating a steady pipeline of projects to transform LDS from pilot status to core grid infrastructure.

Original Description

The International Renewable Energy Agency (IRENA) and the LDES Council hosted the second webinar in a three-part series, bringing together policymakers, market designers and industry experts to explore how policy frameworks and market mechanisms can unlock the value of Long Duration Energy Storage (LDES), supporting large-scale deployment, strengthening system reliability and enabling cost-efficient, high-renewable power systems.

For more on the event: https://www.irena.org/Events/2026/Mar/Unlocking-the-Value-of-LDES-Part-Two-Market-Design-Policy-Signals-and-Path-to-Deployment-for-LDES

To watch first webinar in the series: https://www.youtube.com/watch?v=HwnzNflYOqw